Insurance Claims At $9 Billion From California Fires

SACRAMENTO (CBS SF / AP) — Insurance claims from last month’s California wildfires, including the Camp Fire in Butte County, already are at $9 billion and expected to increase, the state’s insurance commissioner announced Wednesday.

About $7 billion in claims are from the Camp Fire that destroyed the city of Paradise and killed at least 86 people, making it the deadliest U.S. wildfire in at least a century. The rest is for the Woolsey and Hill fires in Southern California.

Collectively, the fires destroyed or damaged more than 20,000 structures, with the vast majority in and around Paradise. On Tuesday, state and federal authorities estimated it will cost at least $3 billion to clear debris.

“The devastating wildfires of 2018 were the deadliest and costliest wildfire catastrophes in California’s history,” Insurance Commissioner Dave Jones said, adding that “behind the insured loss numbers are thousands of people who’ve been traumatized by unfathomable loss.”

There are more than 28,000 claims for residential personal property, nearly 2,000 from commercial property and 9,400 in auto and other claims for the fires.

MAGALIA, CA – NOVEMBER 09: A Cal Fire firefighter monitors a burning home as the Camp Fire moves through the area on November 9, 2018 in Magalia, California. Fueled by high winds and low humidity, the rapidly spreading Camp Fire ripped through the town of Paradise and has quickly charred 70,000 acres and has destroyed numerous homes and businesses in a matter of hours. The fire is currently at five percent containment. (Photo by Justin Sullivan/Getty Images)

The cleanup costs for last month’s fires also will far surpass the record expense of $1.3 billion the U.S. Army Corp of Engineers spent on debris removal in Northern California in 2017.

California Office of Emergency Services Director Mark Ghilarducci said the state will manage cleanup contracts this time. Last year, hundreds of Northern California homeowners complained that contractors paid by the ton hauled away too much dirt and damaged unbroken driveways, sidewalks and pipes. The state OES spent millions repairing that damage.

Ghilarducci said the state OES will hire auditors and monitors to watch over the debris removal in hopes of cutting down on the number of over-eager contractors.

“We learned a great number of things,” last year, Ghilarducci said.

He said the U.S. Corps of Engineers was asked to lead the effort last year because state resources were stretched thin after responding to more than a dozen wildfires. This year, he said state officials can manage the cleanup and costs will be shared among state, federal and local authorities.

Cleanup is expected to begin in January and take about a year to complete, Ghilarducci said. State and federal officials are currently removing hazardous household materials from the damaged properties.